GM to Invest $890 Million in Engines, Keep 1,600 Jobs

General Motors Co. will invest $890 million at five factories to upgrade its V-8 engines to make them more fuel efficient, preserving or creating roughly 1,600 jobs.

The automaker was to announce the investments Tuesday at factories in Tonawanda, N.Y.; St. Catherines, Ontario; Bay City, Mich.; Bedford, Ind.; and Defiance, Ohio.

The spending, which has been in the works for a long time, will help GM meet government fuel economy standards that become fully effective in 2016.

Spokesman Tom Wilkinson said the investments will help the company boost fuel economy of its pickup trucks, sport utility vehicles and high-performance cars. The new engines will have aluminum blocks and more efficient technology that injects fuel directly into the combustion chambers.

Factories in Tonawanda and St. Catherines will make the next generation V-8 engines with aluminum blocks and direct fuel injection, while the other plants will make components for the engines.

GM would not give details of the fuel economy improvements. Federal corporate fuel economy standards call for a 35.5 miles-per-gallon fleet average within six years, up nearly 10 mpg from the current standards.

General Motors Co. will invest $890 million at five factories to upgrade its V-8 engines to make them more fuel efficient, preserving or creating roughly 1,600 jobs.The automaker was to announce the investments Tuesday at factories in Tonawanda, N.Y.; St. Catherines,...